State Farm Mutual Automobile Insurance Co. will return $17.4 million to its Utah auto insurance policyholders, the company announced Monday.
The company's policyholders in 35 states will receive a total of $891 million in State Farm's latest dividends program. The dividends will be paid by check or a credit to current customers over the next renewal cycle.State Farm will return 20 percent of its semi-annual premium on its 292,800 Utah policies.
The dividends are a one-time return of premiums based on the company's claims experience. When the frequency and costs of claims are less than anticipated, dividends help State Farm quickly return money to customers.
State Farm also reduced its auto insurance rates in Utah an average of 7.8 percent, effective June 1.